Israel's Justice Minister Tzipi Livni ramped up the controversy over the decision to prevent Palestinian workers from travelling on Israeli buses in the West Bank by describing the reasons for the move as "apartheid".

Ms Livni, who had directed the attorney general to look into the issue, made the remark in an interview on IDF Radio while discussing Defence Minister Moshe Yaalon's decision last

Israeli Prime Minister Benjamin Netanyahu has authorised the construction of more than 1,000 houses in East Jerusalem, beyond the Green Line.

Around 660 homes will be built in Ramat Shlomo, with 400 more slated for construction in Har Homa. If the process goes ahead, it will end an unofficial freeze on settlement building which was enacted in May last year.

Former International Development Minister Alan Duncan has launched a blistering attack on the Israeli government’s settler policy, comparing it to Argentina’s invasion of the Falkland Islands and Saddam Hussein’s claim to Kuwait.

The situation in Hebron in the West Bank was akin to apartheid and supporters of settlements were “extremists”, he said.